MONROVIA, June 3 (LINA)- FIRESTONE LIBERIA LLC has announced the temporary suspension of rubber purchase across the country following the decision by the National Rubber Pricing Committee to set a price higher than “Firestone buying price”.
Firestone argued that the price set by the Committee is not based on any objective standard, stressing that rubber processors across Liberia operate under diverse conditions and some, including Firestone, are bound by existing social obligations, including education, housing, medical, community development commitments, support for smallholder farmers, and infrastructure maintenance.
Firestone Liberia furthered that other countries with national pricing formulae, do not have these mandatory social responsibilities, as such, these obligations impose significant incremental costs that a uniform pricing model does not consider.
The statement released by the company dated June 2, 2025 stated that the price announced by the Committee on June 1, 2025 does not take into consideration the various factors stated above and therefore is not sustainable.
It can be recalled that the Ministry of Agriculture on June 1, 2025 announced US$ 574.06 as the gross price as the national buying price for a ton of coagulum (cup lumps or slabs) delivered at factory gate.
According to the Ministry of Agriculture statement, the Government of Liberia will receive 4% from the total sum which accumulates to US$ 22.96, while the Rubber Development Fund Incorporated and the Rubber Planters Association of Liberia will receive US$ 3.17and $2.00 respectively while the net price for farmers will be US$ 545.00.
Firestone Liberia disclosed that under the Concession Agreement, Firestone is authorized to set its monthly price based on international market conditions which, according to the company, has been the case, adding that they have been notifying the government through the Ministry of Agriculture.
We have been engaged with the Committee on this issue for over six months and will continue to work with the Committee to formulate a national price applicable to all processors and farmers to ensure a consistent and viable supply of rubber in the interest of the farmers, processors and brokers.
“We are committed to our smallholder farmers and remain hopeful that working together, a solution can be reached in the interest of all the parties involved,” Firestone Liberia stated in its communication.
Firestone Liberia is the country’s largest private employer. In an average year, the company purchases over 60 million pounds of Natural Rubber from smallholder farmers, providing them with an income exceeding US$ 30 million.
